Part I – Introduction
1.1 The Government of Kerala has set up a Pay Revision Commission (hereafter referred to as PRC)as per G.O.(MS) No.115/05/Fin. dated 14.03.2005 with Shri.R Narayanan IAS (Retd.) as Chairman, Shri C M Radhakrishnan Nair IPS (Retd.) and Shri A K Thomas, Director of Panchayats (Retd) as members and Smt. P Chandramathy Amma, Additional Secretary to Government, Finance Department, Government of Kerala as Member Secretary. The Terms of Reference (TOR) are the following.
I To examine and suggest necessary modifications of pay and allowances of ;
a. Posts under Government services, including part-time contingent services.
b. Posts including part-time posts under educational institutions of the government, aided schools and colleges, institutions covered by direct payment scheme and autonomous institutions under the state government (excluding those covered by UGC/AICTE etc., scheme of scales of pay and also posts for which Central scales of pay have already been allowed, such as teaching staff in Medical Colleges etc;) and
c. Posts under local bodies
II To examine the present structure of pay and allowances, other emoluments and service conditions including promotion avenues and fringe benefits available to the above categories and recommend necessary changes on these items indicating the date from which each such change shall be applicable. Also to consider the extent of fringe benefits which are available to Central government employees at present and not available to state government employees. Further, to examine whether other service benefits enjoyed by state government employees but which are not available to the central government employees, shall be continued and if so to what extent and to what period.
III To examine the present civil service set up as a whole and make suggestions to increase its efficiency and social accountability
IV To examine the need to give interim relief to employees and submit the Commission’s views in this regard within three months.
V To examine the benefits available to service pensioners and recommend changes if any needed.
1.2 The Pay Revision Commission would benefit a great deal from inputs received from organizations and individuals having an interest in its Terms of Reference and with this in view it has prepared a questionnaire, which is appended. In Part II, brief background materials on the existing structure of pay and allowances in the State is given.
1.3 The objective of the questionnaire is to elicit the views of the Respondents on a wide variety of topics. The content or phrasing of the questionnaire should not be taken as indicative of the views of the Pay Revision Commission.
Part II – Background Note
2.1 Scales of Pay: The scales of pay of the employees of Kerala Government were revised eight times since the formation of the State of Kerala. The last Pay Revision Committee (1997) was headed by Shri P M Abraham IAS(Retd) and based on its recommendations State pay scales were revised with effect from 1-03-1997. Orders on the recommendations of the Committee as accepted by Government were issued in G.O (P) No.3000/98/Fin. Dated 25-11-1998
2.2 There are at present about five lakh employees (including teachers and part-time contingent employees) whose salary is directly paid by Government. The annual wage bill (2004-05 RE) is around Rs.5878.37 crores, which represents 30.19 % of the total revenue of the state. At present there are 27 scales of pay, the lowest being Rs.2610-3680 and the highest Rs.16300-19900. Annexure I gives the present scales of pay
2.3 To avoid stagnation, a system of time bound promotion initially introduced in 1968 to cover the teaching staff of schools and subsequently extended to all employees is in vogue. However in this scheme, those on entry posts with pay scale of Rs. 2610-3680 will have four higher grades (on completion of 10,18,23 and 30 years). Those on entry posts with pay scales ranging from 2650-4150 to 4600-7125 will have three time bound higher grades. And those on entry, posts with pay scales ranging from Rs. 4600-8000 to Rs.7450-11475 will have two time-bound higher grades.
2.4 In the matter of Dearness Allowance the State Government has since 1967 been following the Central pattern. The third Central Pay Commission in its scheme of revision of scales of pay recommended the merger of Dearness Allowance admissible with reference to All India Consumer Price Index (AICPI) of 272 points (base 1960=100). The State Government accepted this recommendation. One instalment of DA increase is being sanctioned for every eight-point rise in twelve monthly average of consumer price index above 272 points. In the 1983 pay revision Dearness Allowance at 488 points consumer price index have been merged with the pay in formulating the new scales of pay with effect from 1-7-1983. The Fifth Kerala Pay Commission (1988) recommended the fixation of minimum emoluments at par with the Central Government. viz. Rs.750 at 608 points of AICPI and the same was accepted by the Government. The Pay Equalization Commission (1992) did not touch upon the question of fixing emoluments with reference to AICPI as their task was “to determine and recommend compatibility of post with those under the Central Government”. In the last Pay Revision the dearness allowance on pay at 1510 points of AICPI (1960 = 100), i.e., at the rate admissible as on 01.01.1996 was merged with pay at the following rate
As per the recommendations of the Fifth Central Pay Commission, Government of India have sanctioned the merger of 50 % of DA/DR in the basic pay/pension to central government employees/pensioners with effect from 01.04.2004
2.5 As regards other allowances, house rent allowance is given to all employees. The existing rates of HRA are given below:
2.6 Special Pay in lieu of higher time-scale of pay/Other allowances are attached to selected posts in consideration of the special/higher responsibilities attached to their posts or in view of the especially arduous nature of their work or specific additions to it. These include special allowance, PTA/PCA/NPA, Compensatory Allowance, Risk Allowance, Uniform Allowance, and Project Allowance etc. The rates of special allowance/Allowance now admissible vary from Rs.20 to Rs.800 depending on the category of post and place of posting.
The prevailing rates of special pay and other allowance came into force from 01-11-1998
Part III – Service Pension
3.1 Minimum qualifying service for earning pension is 10 years. Full pension is earned with a service of 30 years subject to proportionate reduction for lesser period of qualifying service. Fraction of less than a half year, if any, in the qualifying service above 9 years and 29 years respectively will be rounded to the next completed year.
3.2 Government of India have introduced the system of calculating pension at 50 percent of the entire average emoluments calculated over a period of ten months immediately preceding retirement with effect from 1-1-1986 as recommended by the Fourth Central Pay Commission. The Fifth Kerala Pay Commission recommended that pension may be calculated at 50 percent of the average emoluments calculated upon the last ten months of qualifying service in all cases replacing the slab system then in vogue and the new system was introduced with effect from 1-07-1988. Maximum Pension is 50 % of the maximum of the highest scale of pay under state government and minimum pension is Rs.1275 with effect from 01.03.1997. The Service Pensioners and Family Pensioners in the State are eligible for Dearness Relief with effect from 01.03.1997 at the rate shown below:
The rate of Family Pension from 01-03-1997 is as follows:
The minimum family pension with effect from 01.03.97 is Rs.1275 per month. The variable rates (30 %,20% and 15%) of family pension for different categories of employees existing prior to 01.03.97 was replaced by a uniform rate of 30 % of the last pay for all categories of employees. The ceiling on the amount of the maximum family pension is 30 % of the highest pay in the state government.
3.3 Commutation of pension, an exchange of a portion of pension for a lump sum is permissible and the maximum pension that can be commuted is 1/3rd of basic pension since 1-04-1994. It is restored after 12 years (since 1-7-1988) from the date of commutation. At present for service pensioners under Government of India restoration is allowed after a period of 15 years. Only pensioners are permitted to commute and not their heirs or beneficiaries of Family Pensions.
3.4 Death-cum-retirement Gratuity (DCRG) is paid to an officer at the time of retirement or to the family in case of death of the officer if the officer has completed 5 years of qualifying service or more. Maximum DCRG for retirements from 1-7-1978 is 16.5 times the last month’s emoluments. The maximum amount is limited to Rs.80000/- since 1-03-1992. From 01.03.97 the maximum amount is limited to Rs.2.8 lakh. The maximum amount of DCRG for central government employees is 3.5 lakh. Since 1-7-88 pensioners who have completed the age of 65are also granted medical allowance of Rs.25/- per month. In the last pay revision it was enhanced to Rs.50/- pm and the eligibility was reduced to 60 years.
Revised scales of Pay with effect from 01-03-1997
Revision of pay Scales, Promotion Prospects, etc.
1. What are the defects if any of the present structure of pay and allowances.
2. At present 30.19% of the State’s total revenue is being incurred for pay and allowances of State Govt. employees and teacher. Keeping in view the above position, what measures do you suggest for:
a) Rationalization of pay and allowances
b) Improvement in pay and allowances
3. What is the ideal number of Pay Scales? If it is different from the existing number, please indicate the needed specific changes.
4. The lowest monthly emoluments of a State Government employee as on 01.04.05 is Rs.4150/- [Pay+DA i.e, Rs.2610+(59% of Rs2610)]. As per the report of theFifth Central Pay Commission, the lowest monthly emolument recommended is Rs.4279 (Pay+DP+17%DA) as on 01.04.05.
a) What in your view should be the minimum emoluments of a State Government employee (Pay+DA)
b) If it is different from the present level, please give reasons.
c) Should there be any guiding principle governing the fixation of minimum emoluments particularly at the entry level.
5. The maximum monthly emoluments of a State Government employee as on 1.4.05 is Rs.31641/- (Pay+DA). What are your suggestions about the maximum rates payable at state level?
6. The existing salary ratio between the highest and lowest post at state level is
(i.e the minimum of the lowest scale and of the highest scale) 1 : 6.25
a) Is it a fair ratio? Yes 1 No 1
b) If your answer is no, give reasons and also suggest a fair ratio.
c) When the All India Service is taken into account, the above ratio becomes 1 : 8.16
d) Is this a fair ratio? Yes 1 No 1
e) If the answer is no, please give reasons.
7. The Fourth Kerala Pay Commission (1983) graded professional cadres into three categories: The first consisting of graduates in medicine, veterinary science and dentistry, the second of graduates in engineering and agriculture and the third of graduates in Ayurveda, Homoeopathy, Pharmacy and Nursing. Government had accepted the above grading. The Fifth Pay Commission (1989) followed the same approach.
The Pay Equalisation Commission (PEC, 1992) had also recommended that the existing equation of the scales of pay of the professional categories at the entry level may continue. The PEC recommended that revised scale of Rs.2000 – 3200 may be prescribed for the professional graduates at the entry level. However, in view of the arduous nature of the duties and responsibilities of medical officers (MBBS, BDS) the PEC recommended that they may be given a higher start with three increments at Rs.2180. The Pay Revision Committee 1997 recommended a higher scale to these categories, i.e., Rs.6675-10550. But later Government allowed a higher scale of Rs.7200-11400 to MBBS and BDS holders.
a) Do you agree with the existing classification including the provision for higher start for medical graduates? Yes 1 No 1
b) If no, give reasons and alternate suggestions
c) Are there any other category of posts which should be included in the professional categories and if so at what level?
8. The present system has certain internal relativities as evidenced by the salary levels enjoyed by the different levels. Are any changes in the internal relativities desirable? If so give specific suggestions
9. a) Do you consider that the pay structure of Government employees should be related to:
i) Earning levels in alternative avenues Yes 1 No 1
ii) Resource of the state Yes 1 No 1
iii) Cost of living of a family of average size of four
adult members Yes 1 No 1
b) Do you consider that the minimum pay in the state service should bear any relation to any or all of the following?
i) Per capita income of the state Yes 1 No 1
ii) Minimum wage in industry Yes 1 No 1
iii) Minimum wage in agriculture Yes 1 No 1
iv) Need based minimum wage Yes 1 No 1
v) All of the above Yes 1 No 1
vi) Any other factors (specify)
10. a. Please rank the following factors for fixing the pay scale of Government servants. (Write the ranks, 1-6, in the box provided against each question)
1. Nature of duties and responsibilities 1
2. Qualifications required 1
3. Expertise needed 1
4. Levels of remuneration for comparable post under Central Govt., other State Govts., central public sector organizations in the state, state public sector organization, autonomous institution under the state government 1
5) Prospects of promotion 1
6) Experience in the specific task 1
7) Any other factors (please specify)
11. Do you consider that the total establishment cost of the state government should bear any fixed relations to the following?
a) Gross revenue * Yes 1 No 1
b) State’s own revenue * Yes 1 No 1
c) Revenue expenditure * Yes 1 No 1
d) State domestic product Yes 1 No 1
* Note: A) Gross Revenue includes
i) Tax Revenue
ii) Non-Tax Revenue
iii) Grant-in-aid from Government of India, etc.
iv) Share of Central Taxes
B) State Own Revenue includes
i) Tax Revenue
ii) Non-Tax Revenue
C) Revenue Expenditure includes
Expenditure on Plan and Non-Plan items coming under revenue account.
12. a) The heads of department are at present divided into five groups for the purpose of fixing pay scales. In addition there is also a higher scale above all these groups now given to the selection grade district judges. Do you consider this relativity in the pay scales reasonable? (comparison for relativity of post may be with reference to the nature of duties and responsibilities, the qualifications prescribed and other factors)
Yes 1 No 1
b) If no, please specify your suggestions:
13. a) While constructing new scales of pay:
i) Should the existing DA be merged with pay Yes 1 No 1
ii) Should any portion of DA be merged with pay Yes 1 No 1
iii) Give reasons
b) At present there are different rates of increments in the same scale. Is it desirable to switch over to uniform rate of increment throughout the scale.
Yes 1 No 1
c) What according to you should be
i) Minimum increment Rs.
ii) Maximum increment Rs.
d) At what interval should increment be granted and should it be uniform for all the scales.
e) i. Should annual increment be an automatic enhancement of remuneration?
ii. Whether it should be related to efficiency and performance instead of being time bound?
f) If yes, how can these be related to performance appraisal criteria?
g) What should be the criteria for determining the rates and frequency of increments of different scales of pay?
14. Give your views on the prevalent scheme of granting:
a) Stagnation increment
b) Higher grades
c) Time bound promotion
15. a) What criteria should be followed for fixation of pay in the revised scales.
b) Should weightage be given for length of service, merit or other factors over and above normal fixation? If so your views.
c) Rule 28 A KSR allows certain benefits while fixing pay. Should this be continued/modified? If so what are your suggestion?
16. What should be the relationship between:
a) HRA and the Basic Pay
b) HRA and prevailing market rent
c) What modifications would you suggest in HRA
17. a) Do you consider the present system of special pay attached to various posts as rational and fair. Yes 1 No 1
b) Give your suggestions for modifications if any required
18. a) Do you think that other compensatory allowances given are adequate to different categories of employees. Yes 1 No 1
b) If inadequate give details
19. Give your remarks on the existing schemes relating to the grant of
20. Does the present scheme relating to medical attendance rules require?
any change ? Yes 1 No 1
a) If yes, give suggestions.
b) Suggest measures to discourage misuse of medical reimbursement.
c) Any alternative system to suggest, specify.
Anomalies in the existing pay scales
1. a) Are there any anomalies in the existing pay scales Yes 1 No 1
b) If yes, what are they?
c) Suggest measures to rectify them.
2. a) Are there any grievances or disparities regarding pay and allowances and allied matters, which in your opinion
have so far gone unnoticed or un addressed. Yes 1 No 1
b) If yes, please give details with suggestions for rectification.
1. a) Do you consider advisable to retain the existing scheme of
Pension in the state. Yes 1 No 1
b) If no, give reasons.
2. If you feel that it requires changes, suggest the changes
3. What should be the minimum qualifying service for becoming eligible for full pension.
. . . . . . . . . . . . . years.
4. What would be the ideal quantum of pension expressed as a percentage of pay last drawn
. . . . . . . . . . . .%
5. Should there be a ceiling on pension ? Yes 1 No 1
6. a) Should we pay higher proportion of pay as pension to lower grade employees to ensure equity and justice. Yes 1 No 1
b) Give arguments in support of your answer. If no, give remarks.
7. a) Do you agree with the existing rules relating to encashment of earned leave at the time of retirement ? Yes 1 No 1
b) Give reasons for your answer
8. a) Is there a case for service gratuity to be paid to those who complete only a short period of service ? Yes 1 No 1
b) If yes, give reasons.
9. Indicate the ideal eligibility conditions for giving death cum retirement gratuity.
10. Indicate the ideal minimum and maximum death cum retirement gratuity to be fixed ?
Minimum Rs……………… Maximum Rs…………………
11. Is indexing pension to cost of living desirable ? Yes 1 No 1
12. a) The minimum pension at present is Rs1275/- What is your view on this?
Adequate 1 Fair 1 Inadequate 1
b) If inadequate,
the adequate amount is Rs…………..
13. a) The maximum pension at present is Rs.9950/- What is your view on this?
Adequate 1 Fair 1 Inadequate 1
b) If inadequate,
the adequate amount is Rs……………
14. It has been represented that since the pension benefits are calculated with reference to the rules in force at the time of retirement, disparities exist with regard to the quantum of pension/death cum retirement gratuity admissible to the same or comparable categories of employees retiring at different times. What are your comments about this and your suggestion for rectification and avoidance of such disparities?
15. Have you come across any specific cases of anomalies or inadequacies as a result of the operation of the present pension rules? If so, please give examples with practical suggestions to rectify them.
16. a) Do you suggest any change in the scheme of voluntary retirement?
Yes 1 No 1
b) If yes, what are your suggestions
c) There are suggestions to weed out the dead wood, Government should utilize the provision to retire people who have crossed the age of 50 by granting them eligible pension. What are your views on making such a scheme operational optimally?
17. a) Do you advocate setting up a State Pension Fund with a freedom to invest its corpus on safe income yielding assets? Yes 1 No 1
b) Give your views about having a scheme for contributory pension to enable employees to link their savings with future pension.
18. a) Do you consider that the scheme of liberalized family pension introduced from 1964 and revised from time to time is
Adequate 1 Fair 1 Inadequate 1
b) Please give your suggestions if modification is required
19. Give your comments on the present rules and rate regarding the commutation of pension and the decision of the government to restore the commuted portion after 12 years?
20. a) Do you think that the medical benefits available to pensioner is
Adequate Yes 1 No 1
Effective Yes 1 No 1
b) Do you favour introducing a Pensioner’s Medical Benefit/
Health Insurance Scheme? Yes 1 No 1
c) Specify details.
21. What difficulties, if any, are faced in the drawal of pension and what are your suggestions for their removal?
22. a) Should the retirement age be raised Yes 1 No 1
b) If yes, the age limit should be 58 1 60 1
c) What benefits will accrue to the Government and the public as a result.
d) Will the raising of the retirement age affect the employment
prospects of the youth Yes 1 No 1
1. From 1970 to 2005, State Pay Scales have been revised in 1973, 1978, 1983, 1988 1992 and 1997. During the same period central Pay Scales have been revised in 1973, 1986 and 1996.
(Another revision of Central Scales are due with effect from 2006 and another revision of State Scales are now under the consideration of Pay Revision Commission)
a) What intervals would you suggest for State Pay Revision?
b) Are there advantages or disadvantages in having the same intervals between revisions as in Govt. of India? Advantages 1 Disadvantages 1
2. How will you define the concept of need-based minimum wage?
3. a) What steps do you recommend for enabling the employees in lower pay scales to improve their qualification in order to secure entry in higher posts/services.
b) Do you think modifications are required in the service rules to enable a Government servant to acquire higher relevant qualifications and better training? Yes 1 No 1
c) Can efficiency and accountability of Government servant be objectively fixed? Yes 1 No 1
If yes, give your views.
4. a) What steps would you advocate to ensure greater efficiency and accountability of Government servants in the performance of their duties?
b) In what manner can you define social accountability? Give details.
5. What change do you envisage in the role and functional responsibilities of Government employees in the rapidly changing context in which
a) The Government is going to be a facilitator and not a provider,
b) More powers, functions and responsibilities are transferred to local bodies, and
c) The Government is forced to become a lean healthy and efficient organ of the State.
6. a) There is increasing use of various aids to administration and decision making such as Personal Computers, Word Processors, etc. What changes, if any are required in the light of these to qualification prescribed for various posts?
b) Do you feel that knowledge of Word Processing should be made compulsory for certain categories?
7. At present earned leave can be accumulated up to a maximum of 300 days. It has been suggested that there should be no such restriction. What are your views?
8. What are your views regarding the hours of work and public holidays in Government service?
9. Do you have any suggestion for raising resources and for effecting economy in Government expenditure in the context of development of the concept of e-governance so that the net effect of increased emoluments consequent on revisions of pay of Government employees may be kept within reasonable limits?
10. Do you suggest any changes in the existing scheme of leave without allowance for taking up alternate employment? Yes 1 No 1
If yes, what are the changes?
11. Do you consider any changes in the scheme of compassionate employment
scheme necessary or desirable ? Yes 1 No 1
If so give details
Department Signature Name & Address
email Tele. Number